Prague – The recent adjustments to the EU’s climate policy were deemed inadequate concessions by the Chamber of Commerce and the Confederation of Industry and Transport, highlighting ongoing risks of significant challenges and competitiveness loss for Czech and European industries. They view these changes as merely a deferral of certain issues. Both organizations indicated that legislative conditions will be crucial, according to comments made to ČTK. The Heating Association noted that the delay extends the advantages for households generating heat from fossil fuels independently.
“A comprehensive revision of ETS 2 is necessary, rather than just a one-year postponement of the problem,” stated Lenka Janáková, director of legislation, law, and analysis at the Chamber of Commerce. She mentioned that lowering the climate target to 85 percent and allowing emissions reductions through international credits effectively reduces ambition by two percentage points. “However, if the credits do not cover the entire five percent, pressure for domestic measures will escalate,” added Janáková.
The Confederation of Industry expressed dissatisfaction with the emission reduction plan, labeling it unrealistic and detrimental to Czech industry. “European industry is struggling due to persistently high energy prices relative to the global market and excessive regulation, leading to declining competitiveness. We worry that the Czech Republic will face disproportionate impacts given the significant role of industry in its GDP, even though this is a union target with no specific contribution from the Czech Republic,” noted Daniel Urban, the confederation’s general director. He emphasized that the bulk of the reduction burden will fall on industry and energy sectors.
The Heating Association commented that the adjustments to the climate target would not substantially affect ongoing decarbonization efforts in the heating sector. While they acknowledge the intent to delay the ETS 2 system, they pointed out that this prolongs the unreasonable advantage for households generating heat from fossil fuels compared to those connected to heating plants, which are set to invest over 200 billion CZK in decarbonization over the next five years.
Analysts believe that the EU’s climate target adjustments may provide short-term relief, but do not alleviate the union’s current policy in the long run. On the contrary, postponing the ETS2 system is expected to increase permit costs in the coming years. Furthermore, establishing a new climate target for 2040 is essentially an enhancement of the Green Deal, as no prior target existed for that year, thus tightening existing regulations. Overall EU targets remain unchanged, meaning states must achieve emission reductions in a shorter timespan. (November 5)
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